As student transportation officials return home from this week’s NASDPTS and NAPT annual conferences in Memphis, many will begin itemizing the expenses paid or incurred for lodging, meals and incidentals during their business trip. This month, the Internal Revenue Service updated its rules for special per-diem rates for transportation industry taxpayers to use in substantiating necessary business travel expenses.
The updated rules are outlined in IRS Notice 2012-63. Effective Oct. 1, these special rates differ from those for other taxpayers.
Specifically, the 2012-2013 special per-diem rates include (1) the special transportation industry meal and incidental expenses (M&IE) rates, (2) the rate for the incidental expenses-only deduction and (3) the rates and list of high-cost localities for purposes of the high-low substantiation method.
The standard per-diem rates are $242 ($65 for M&IE) for travel to high-cost localities and $163 ($52 for M&IE) for travel to any other locality within the continental U.S., according to the notice.
The publication also contains updates to the list of “high-cost localities” used in the high-low substantiation method and to the deductible percentage of business meals and entertainment expenses of transportation industry employees. There are no changes to the list of high-cost localities in this year’s notice, although some locations like Aspen, Colo., are considered as such only for a portion of the year.
On Sept. 27, 2011, the General Services Administration published temporary regulations revising the definition of incidental expenses under the Federal Travel Regulations to include only fees and tips given to porters, baggage carriers, hotel staff and staff on ships.
Now, certain items are no longer included in incidental expenses, such as transportation between places of lodging or business and dining establishments. Also struck from the incidentals list is the mailing cost of filing travel vouchers and paying employer-sponsored credit card billings. Yet, taxpayers using per-diem rates may separately deduct or be reimbursed for transportation and mailing expenses.
For further information on this notice, transportation officials may contact Mr. Brauer with the IRS at 202-622-4970.
